10 August 2006 - Coca-Cola Amatil (CCA), the largest manufacturer of non-alcoholic beverages in the Asia-Pacific region, today announced the formation of a joint venture with SABMiller plc, one of the world's leading brewers, to sell and distribute imported premium beer in Australia.
The 50:50 joint venture between CCA and SABMiller, to be known as Pacific Beverages Pty Ltd, will initially import SABMiller’s international premium beer brands, Peroni Nastro Azzurro, Miller Genuine Draft and Pilsner Urquell into the Australian market.
The joint venture will benefit from the support of both CCA and SABMiller, with SABMiller producing the beer and providing marketing expertise, whilst CCA will utilise its comprehensive sales and distribution infrastructure to sell and distribute the premium beer brands.
The joint venture, which is expected to be operational in time for this year’s Christmas period following the fulfilment of certain conditions, will be headed by Mr Ari Mervis, a senior, experienced SABMiller executive. For the past four years Mr Mervis has been managing director of SABMiller’s Russian operation, a highly successful business which has attained leadership in the profitable international premium sector of the Russian beer market. Prior to this, Mr Mervis held various executive managerial positions within SABMiller’s fruit juice operations and its southern African Coca-Cola bottling interests.
CCA’s Group Managing Director, Mr Terry Davis, and Mr André Parker, Managing Director, SABMiller Africa and Asia, said the joint venture extended their companies’ continued relationships with premium brands. Mr Davis said the move into premium beers was a natural extension of CCA’s existing range of premium non-alcoholic beverages in the hotel, restaurant and cafe (HORECA) market.
“Both SABMiller and CCA own, market and distribute many of the world’s premium beverage brands,” Mr Davis said.
“When they are combined with SABMiller’s world-class marketing capabilities and CCA’s strong customer relationships, salesforce and distribution capabilities, you have a very solid platform to expand the premium beer offering in the Australian market.
Mr Davis said that over the past three years, CCA’s HORECA business had grown from strength to strength and was now a significant contributor to CCA’s Australian beverage business earnings.
“We are confident that the addition of the international premium beer brands to the stable will lead to further opportunities to expand our existing customer relationships,” he said.
Mr Parker said SABMiller was delighted to partner with CCA to grow the premium beer business in Australia.
“We believe that our joint expertise in the beverage industry will give us the necessary foundation to be a significant player in this segment within one of the most profitable beer markets in the world.
“We believe there is enormous potential to grow the Peroni, Miller Genuine Draft and Pilsner Urquell brands, and look forward to working with our partner to build Pacific Beverages into a formidable contender in this category.”
The joint venture is expected to deliver only a small contribution to earnings in the first few years with profits being reinvested in the brands to achieve long-term sustainable brand equity.